Santosh Rai, who lost two kids and his wife in the crash last year, at his home in Karama in Dubai.
Santosh Rai, who lost two kids and his wife in the crash last year, at his home in Karama in Dubai.

Air India crash families to file compensation suits



DUBAI // At least 10 families in the UAE are expected to file for compensation within two weeks over the Dubai-Mangalore plane crash that killed 158 people.

The move comes ahead of the second anniversary of the tragedy.

Family support groups have warned relatives they will lose their legal right for compensation if they do not file a case by the end of next month - within two years of the May 2010 air crash - according to international law.

Many families in the Emirates and India had hoped the matter would be settled in their favour before they had to file compensation suits, but that now appears unlikely.

"We will be filing the papers soon," said Santosh Rai, an Abu Dhabi resident who lost his wife, 10-year-old son and nine-month-old daughter when the Air India Express flight 812 from Dubai overshot the runway in Mangalore and crashed. Only eight people survived.

"No compensation covers their lives," he said.

"No money will compensate what we have suffered and what we imagined for our future with our family. They [Air India] think the more time that passes, people will forget, but it's almost two years and we have not forgotten. We will never forgive Air India."

Air India officials in Dubai could not be reached for comment yesterday.

But the civil aviation minister, Ajit Singh, told the lower house of the parliament last month that the government-owned carrier had settled 121 cases.

"Regular meetings were being held at Mumbai and Mangalore to speed up the process of distribution of compensation," Mr Singh said, according to Indian media reports.

The Mangalore Air Crash Victims' Association has urged families to file claims without delay since the Montreal Convention sets a two-year time limit for any claim.

"We have sent notices to all family members stating that the limitation period is May 22," said Vardaraj Kayangal, the association's legal adviser. "They cannot claim for compensation after that.

"Some people have already said they will be filing a civil case."

Mr Kayangal added that some people might not approach the civil courts.

"It is a costly process," he said, adding that the carrier was believed to have paid a minimum of 2.5 million rupees (Dh180,000) and as much as 77.5m rupees to some families.

In January, India's Supreme Court issued notices to the country's government and Air India saying that it would review a petition seeking compensation of 7.5m rupees for families of the dead. The case was scheduled to be heard this month but has been adjourned.

"The matter is now posted for October 19," said Sanjay Hegde, advocate for Abdul Salam, a fisherman who went to the courts seeking to be paid according to the Montreal Convention after his Dubai-based son was killed in the crash.

The convention requires airlines to pay compensation of 100,000 Special Drawing Rights (SDR) - a mixture of currency values established by the International Monetary Fund - that is equal to 7.5m rupees per passenger to families.

Under the convention, negligence does not need to be proven. In India's first judgment since it signed the treaty in 2009, a court in Kerala last July ordered the airline to follow the convention.

But this was overruled a month later in favour of Air India, with victims asked to show "proof of loss" as they were not automatically entitled to 100,000 SDR.

"It's not the money, I want justice," said Abdul Rahman, a Dubai resident who lost his wife and nine-year-old son in the crash. "We know most people have already got compensation."

"Most of us have our papers ready. We are updating everybody and telling them they must file now."

Court cases in India normally take a long time to settle because of a huge backlog of cases.

"People were waiting and waiting for the court case to finish but how long can they wait?" asked Narayanan Kalingom, the vice president of the Mangalore Air Crash Victims' Association. He lost his brother, a Dubai resident, in the crash.

"People feel helpless and many have just accepted their claims."

pkannan@thenational.ae

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Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

Armies of Sand

By Kenneth Pollack (Oxford University Press)
 

COMPANY%20PROFILE%20
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

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